Asset Building , Food Security, and Prosperity

1. Asset Building , Food Security, and Prosperity Janet Byrd and Alison McIntosh Neighborhood Partnerships January 19, 2012 Corvallis, Oregon

2. The American Dream “ . . . life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement . . . regardless of the fortuitous circumstances of birth or position . . . - James Truslow Adams, 1931

3. Assets? 3 • Education and training • Health • Financial reputation, or credit • Financial reserves • Property • Retirement resources

4. Assets matter Courtesy of cfed 4 • Assets matter economically, socially and psychologically • Income is necessary, but is not enough to build financial stability and mobility • Assets create a financial buffer to weather emergencies • Promote long-term thinking and planning • Enhance the well-being and life chances of children • Increase the likelihood of going to and succeeding in college • Are linked to reduced marital dissolution and domestic violence

7. An Intentional Middle Class A strong middle class – the engine that drives our economy – doesn’t arise by accident, but is the result of deliberate and proactive policy choices.

8. Americans want the government to play a role in promoting economic mobility An overwhelming 83 percent want the government to either provide opportunities for the poor and middle class to improve their economic situations, prevent them from falling behind or both. However, Americans believe the government is currently doing an ineffective job. 2011 - The Pew Economic Mobility Project

9. Not doing enough for those most affected by the economic downturn

10. We believe… • A good economy is one in which opportunity and prosperity are broadly shared. • A strong middle class is the result of deliberate and proactive policy choices. • Public structures are the foundation of our economy and the tools for creating opportunity, prosperity and a strong middle class. • The economic well-being of average Oregonians matters to us all.

11. Public Policy Shapes Opportunities to Build Assets • US has long history of subsidizing asset building • Homestead Act • GI Bills • Home Mortgage Interest Deduction • VA and FHA loans • 401(k)s, Individual Retirement Accounts, etc. • Policy has been uneven and inconsistent • Subsidizes middle- and upper-income; penalizes the very poor

12. Upside-down subsidies Source: CFED. 2010. Upside Down: The $400 Billion Federal Asset Budget

13. Upside-down subsidies Source: CFED. 2010. Upside Down: The $400 Billion Federal Asset Budget

14. Oregon’s tax expenditures “Potential”revenues ~ $26 billion Tax expenditures ~ $14 billion 46 % Pens’n& IRA contrib Persnlexemp ER paid benefits FIT Social Security benefits Home mortgage interest & prop tax ~200 smaller state and federal subtractions, credits and deductions Medical & Senior Med Deductions

15. Asset distribution & trends: Racial wealth gap Median Income & Median Net Worth by Race, 2007 Sources: American Community Survey (Income), Survey of Consumer Finances (Net Worth) 15

16. Asset distribution & trends: Family structure wealth gap Median Net Worth by Race, Household Structure, 2007 Source: Chang, M. and Lui, M. 2010. Lifting as We Climb: Women of Color, Wealth and America’s Future 16

17. Asset distribution & trends: Asset poverty Source: CFED. 2009-2010 Assets & Opportunity Scorecard 17 • Asset Poverty: Insufficient financial resources to subsist at federal poverty line for 3 months if income interrupted • Asset poverty affects…

18. Income and Asset Poverty in the Region Rates of Household Income Poverty & Asset Poverty in Idaho, Iowa, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington and the United States Idaho 11.5% 15.4% Iowa 10.9% IncomePoverty 18.6% Minnesota 9.5% 14.9% Asset Poverty Montana 31.7% 13.6% North Dakota 13.2% 22.8% Oregon 12.6% 26.2% South Dakota 12.7% 18.6% Washington 10.8% 21.0% National9.6% National25.9% Source: CFED. Assets & Opportunity Profiles for St. Paul and Minneapolis. 2011. 18

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20. 12 Scorecard Policy Priorities LEARN 1. Financial Education in Schools 2. Access to Quality K-12 Education EARN SAVE INVEST Tax Credits for Working Families Job Quality Standards Lifting Asset Limits in Public Benefit Programs State Support for IDA Programs College Savings Incentives State Support for Microenterprises First-Time Homebuyer Assistance PROTECT 10. Protections from Predatory Short-term Loans 11. Foreclosure Prevention and Protections 12. Access to Health Insurance

21. Strength of Oregon’s Policies State IDA Program Support State Microenterprise Support Tax Credits for Working Families Strong policy, but some room for improvement Very strong policy Protections for Predatory Short-Term Loans Access to Health Insurance Financial Education in Schools Job Quality Standards Foreclosure Prevention and Protections Some policy, but much room for improvement Lifting Asset Limits in Public Benefit Programs Minimal policy Access to Quality K-12 Education First-Time Homebuyer Assistance Weak policy College Savings Incentives

22. Our next steps – February 2012 • Protect consumers at risk of foreclosure • Regulate mortgage servicers • Prevent “dual-track” • Require pre-foreclosure mediation • Meet Basic Needs – keep people on the path to prosperity • Child care and transportation in Temporary Assistance for Needy Children • Emergency Housing, Shelter, and Food

23. Our next steps –beyond February • Protect consumers at risk of foreclosure • Extend and Expand the Earned Income Tax Credit • Require Financial Education in the schools

24. Other ideas ???

25. Asset Building, Food Security, and Prosperity Janet Byrd and Alison McIntosh Neighborhood Partnerships 310 SW Fourth Avenue, Suite 715 Portland, OR 97204 503-226-3001 jbyrd@neighborhoodpartnerships.org amcintosh@neighborhoodpartnerships.org www.neighborhoodpartnerships.org